HROT January/February 2014 - 8

Upside
NEWS FROM THE WORLD OF WORK
M&A Activity
Convergys to Acquire Stream
Infor Acquires PeopleAnswers
Convergys Corporation looks to expand and strengthen its United
States and global presence in the $55 billion outsourced customer
management services industry through the recent acquisition of Stream
Global Services for a total enterprise value of $820 million in cash. When
combined, total company revenue is expected to exceed $3 billion,
creating the second largest customer management services provider in
the world.
" We believe this combination will strengthen Convergys by diversifying
our client base and enabling us to offer a wider range of customer
transactions in a more cost effective manner from multiple geographies,
at scale, " says Andrea Ayers, president and CEO of Convergys.
The benefits:
*
Expands and diversifies client base. Stream's technical support
services expertise is expected to strengthen Convergys' position in
the technology industry.
*
Extends global footprint, language offerings, and service
capabilities. By integrating Stream's delivery capacity in the
Americas, Europe, Asia-Pacific, Middle East and Africa, Convergys
expects to extend its geographic reach, breadth of languages and
service capabilities.
*
Enhances revenue and profit potential. Once the transaction
is complete, Convergys expects to have approximately 125,000
employees serving clients in 35 languages from over 135 contact
centers in 25 countries.
The acquisition is subject to certain adjustments, from funds managed
by Ares Management and Providence Equity Partners, as well as
from LiveIt, the BPO investment arm of Ayala Corp. Convergys also
announced the transaction is expected to add approximately $0.35
in diluted earnings per share (EPS) in the first 12 months after close,
excluding one-time charges, intangible amortization and integration
costs.
The acquisition of PeopleAnswers is set to make business application
software's Infor HCM suite one of the first HCM suites to deliver a realworld
use case for big data that impacts results that can be measured.
Infor's 70,000 customers will benefit from the cloud-based talent science
platform that leverages predictive talent analytics.
Developed by a team of PhDs in behavioral science, PeopleAnswers
analyzes 39 behavioral traits for job candidates and produces a fit rating
and allows organizations to measure significantly reduced turnover,
improved customer service, and increased revenue by qualifying
applicants more thoroughly.
PeopleAnswers is experiencing strong annual growth (three-year
compound annual growth rate of 32 percent) and has grown for 41
consecutive quarters.
Financial terms of the deal are not being disclosed.
HireVue Aquires CollaboRATE
HireVue closed out the year strong with the announcement of acquiring
CollaboRATE Inc., a spinoff from ZRG Partners, in late December.
HireVue provides a digital interviewing platform and the acquisition
will bring its clients the CollaboRATE technology, which enables
more informed, data-driven hiring decisions while also equipping
organizations with feedback on internal interviewers and talent scouts.
CollaboRATE complements HireVue's own technology, which leverages
digital interview guides, validated questions, real-time feedback and
analytics for more data-driven hiring decisions. The acquisition of
CollaboRATE will impact HireVue clients with:
* Patented collaboration, feedback, and comparison tools;
* Enriched reporting and analytics from talent interactions; and
* Insights on internal interviewers, recruiters and decision makers.
[8]
HRO TODAY MAGAZINE
| JANUARY/FEBRUARY 2014
HROT January/February 2014

Table of Contents for the Digital Edition of HROT January/February 2014
